SEATTLE and TORONTO—(CNW)—April 29, 2003— Amazon.ca and HMV Canada today announced the re-launch of HMV.com as a co-branded, Canada-oriented Web site powered by Amazon's e-commerce technology.

Launched today, the co-branded site features the vast selection of CDs, videos and DVDs available at Amazon.ca. Customers also have access to Amazon.ca's low prices—including Free Super Saver Shipping on orders over $39—editorial and customer reviews, recommendations, 1-Click® ordering and other site features.

Under the agreement terms, Amazon.ca will provide inventory, content and customer service for the co-branded site. Fulfillment will be handled by Assured Logistics, the current fulfillment provider for Amazon.ca. The new site will continue to offer content unique to HMV.com, including information about HMV store locations, jobs and in-store events.

“Amazon.ca is passionate about providing Canadians with the best possible shopping experience, including low prices, vast selection and great convenience, and we are incredibly pleased to power the new HMV.com,” said Marven Krug, general manager of Amazon.ca. “HMV is a leader in the physical world of music and entertainment, and shares our commitment to constantly improving the customer experience.”

“This is a great win for HMV customers,” said Chris Walker, president of HMV North America. “E-commerce acts as an additional virtual store to HMV's 100 physical store portfolio, increasing our reach and adding value to the store chain as a customer research tool. This alliance allows HMV Canada to offer our customers the convenience of a great online shopping experience with the additional benefits that will emerge through our new association with Amazon.ca. HMV continues to provide the World's Number One in-store shopping experience for millions of music and movie lovers in Canada.”

Amazon.ca's Web site, including its Book, Music, Video and DVD stores, will continue to operate independently. Both companies will work together to bring about future added benefits to HMV customers.

The multiyear agreement between HMV and Amazon.ca is the first such agreement for Amazon.ca, and extends the list of similar strategic alliances Amazon has formed with best-of-breed brands worldwide such as Borders.com, Waterstones.co.uk, Virginmega.com and Virginmega.co.jp. These relationships demonstrate Amazon's ability to customize its technology to meet the needs of other leading companies, with the mutual goal of better serving customers.

About Amazon.ca

Seattle-based Amazon.ca (www.amazon.ca) is part of the global family of Amazon Web sites that have become known for great prices, selection and convenience. Amazon.ca customers can find and discover over 2 million English and French books, CDs, videos and DVDs – all at everyday low prices. Amazon.ca sources products directly from Canadian publishers and distributors, ensuring a rich offering of Canadian titles and content. Features such as original editorial reviews in English and French and product recommendations help Amazon.ca customers find the right products for them within the site's broad selection.

To ensure all orders are delivered to customers quickly and efficiently, Amazon.ca works with Canada Post, one of the world's most progressive postal companies. Orders placed at Amazon.ca are fulfilled and shipped from within Canada by Assured Logistics, a part of the Canada Post Group of Companies.

Through Amazon.ca Associates (www.amazon.ca/associates), third-party Web sites can link to Amazon.ca and earn referral fees on sales generated by those links.

Amazon.ca is the trading name of Amazon.com.ca, Inc., an affiliate of Amazon.com, Inc (Nasdaq: AMZN).

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to potential future losses, significant amount of indebtedness, competition, commercial agreements and strategic alliances, seasonality, potential fluctuations in operating results and rate of growth, foreign exchange rates, management of potential growth, system interruption, international expansion, consumer trends, inventory, fulfillment center optimization, limited operating history, government regulation and taxation, fraud, and new business areas. More information about factors that potentially could affect Amazon.com's financial results is included in Amazon.com's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2002, and all subsequent filings.

About HMV

With over 75 years of music retailing history, 346 stores worldwide and 100 stores in Canada, HMV is the world's premier retailer of music. HMV has proven itself as an innovative leader in Canada since 1986 and has been named Canadian Music Retailer of the Year for the past fifteen years. HMV.com, launched in July 1999, offers Canada's largest on-line music selection and downloads from several major artists. For the second consecutive year, HMV.com was named the e-tailer of the year by the Canadian Music Industry. With links to Japan, the UK and Australia, HMV.com offers nearly two million CDs, videos and DVDs.

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